This study carries forward the exploration of the link between the enactment of the Malawi Investment Promotion Act (1991) and the investment incentives laid out therein, and the level of foreign direct investment to Malawi. In doing so, the study aims to establish the progress that Malawi has made in nurturing an investment climate that is attractive to foreign investors. The respondents were 26 foreign companies that have invested in Malawi following the enactment Investment Promotion Act. All participants completed a self-administered questionnaire covering several attributes pertaining to Malawi's investment environment. Interviews were also conducted with government officials and employees from the Malawi Investment Promotion Agency (MIPA). The data strongly suggest that FDI has contributed to Malawi's economic growth to a certain extent, and that foreign direct investment inflows have risen during the 1990s. However, the results must be viewed within the context of the broader macroeconomic environment. If Malawi is to see any increase in its FDI inflows, an overall strategy is essential to restore macroeconomic conditions that are conducive to growth, to strengthen the legal and regulatory framework for doing business in the country, and improve the infrastructure that supports the economy. Only when the fundamental determinants are attractive enough for investment to be profitable, will investment incentives have any significant effect. / Thesis (MBA)-University of Natal, 2003.

Thesis (MDF (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: The risk of operating in a foreign investment climate is a subject of interest to most investors looking for opportunities to expand their international footprint. There are many organisations that provide risk assessments of the levels of threat of specific risks in foreign countries. However, most focus on political or what is commonly known as country risk or they provide a summary of ranking providing a comparison of different countries’ investment climate attractiveness. The make-up of the variables used in coming up with the ranking or a view on a particular country do not usually provide a level of detail that allows an analyst to understand the qualitative issues that give a country a particular rating assessment or ranking. This research has tried to address this gap by coming up with a detailed qualitative model that provides understanding of the key sources of information required for each major category of risk. The research also attempts to integrate as many aspects of the business environment that could affect a country. A particular case of Malawi has been chosen to demonstrate the level detail and understanding the investors need to reach before making a decision on whether to invest in a country. The research focuses on three major areas. The first is to provide a good understanding of what is currently available for analysts to use in determining risk factors of a particular environment or risk category. The second is to illustrate the uses and limitations of the options available in the form of assessment reports or assessment models. The third is to develop a model and demonstrate its use in the context of Malawi’s investment climate. / AFRIKAANSE OPSOMMING: Die meeste van die beleggers op soek na geleenthede om hul internasionale voetspoor uit te brei, stel ook in die risiko belang wat besigheid in ’n buitelandse beleggingsklimaat inhou. Talle organisasies verskaf risiko-assesserings van die bedreigingsvlakke van spesifieke risiko’s in die buiteland. Die meeste van hulle kyk egter na politieke of landspesifieke risiko’s of hulle verskaf ’n opsomming waarin die ranglysposisies van die aanloklikheid van verskillende lande se beleggingsklimate vergelyk word. Die samestelling van die veranderlikes in hierdie ranglysposisies of oorsig van ’n spesifieke land verskaf gewoonlik nie voldoende detail aan die ontleder om die kwalitatiewe kwessies te verstaan wat aan ’n land ’n spesifieke assessering of ranglysposisie gee nie. Hierdie navorsing fokus op hierdie gaping deur ’n breedvoerige kwalitatiewe model te verskaf vir ’n beter begrip van die vernaamste inligtingsbronne wat vir elke groot risikokategorie vereis word. Hierdie navorsing poog ook om soveel aspekte van die sakeomgewing te integreer wat ’n land kan beïnvloed. Die spesifieke geval van Malawi is gekies om die vlak van detail en begrip te demonstreer wat beleggers nodig het voordat hulle ’n beleggingsbesluit ten opsigte van ’n land kan neem. Die navorsing lê op drie belangrike areas klem. Die eerste is om ’n goeie begrip te bied van die inligting wat tans aan ontleders beskikbaar is om die risikofaktore van ’n spesifieke omgewing of risikokategorie te bepaal. Die tweede is om die gebruike en beperkings te illustreer van die opsies wat in die vorm van assesseringsverslae of assesseringsmodelle beskikbaar is. Die derde is om ’n model te ontwikkel en die gebruik daarvan in die konteks van Malawi se beleggingsklimaat te demonstreer.